POST UTME VERITAS UNIVERSITY 2020 Accounting | Objective

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Question 1
A partnership has the following capital accounts: | Partner | Capital | Drawing | Balance | | --- | --- | --- | --- | | A | ₦100,000 | ₦20,000 | | | B | ₦150,000 | ₦30,000 | | | C | ₦200,000 | ₦40,000 | | What is the total capital of the partnership?
A. ₦450,000
B. ₦500,000
C. ₦550,000
D. ₦600,000
Question 2
A company's trading account for the year ended 31st December 2020 showed a profit of ₦1,500,000. The company also had a profit of ₦250,000 from its investments. Calculate the company's total profit for the year.
A. ₦1,750,000
B. ₦1,750,500
C. ₦1,750,750
D. ₦1,751,000
Question 3
A company has the following transactions in its control account: ₦50,000 debit to purchases account and ₦30,000 credit to purchases account. What is the net effect on the control account?
A. ₦20,000 debit
B. ₦20,000 credit
C. ₦30,000 debit
D. ₦30,000 credit
Question 4
A company's trial balance as at 31st December 2020 showed a debit balance of ₦200,000. The company also had a credit balance of ₦300,000. Calculate the company's net profit for the year.
A. ₦100,000
B. ₦100,500
C. ₦100,750
D. ₦101,000
Question 5
A government agency has the following transactions in its accounting records: | Date | Description | Debit | Credit | | --- | --- | --- | --- | | 1 Jan | Revenue | ₦100,000 | | | 15 Jan | Expenditure | | ₦50,000 | | 20 Jan | Transfer to another agency | ₦20,000 | | | 25 Jan | Receipt from another agency | | ₦30,000 | What is the net result of the transactions?
A. ₦20,000
B. ₦30,000
C. ₦40,000
D. ₦50,000
Question 6
A company purchased a machine for ₦500,000. The machine has a useful life of 5 years and a residual value of ₦50,000. Calculate the annual depreciation.
A. ₦90,000
B. ₦92,000
C. ₦94,000
D. ₦96,000
Question 7
A company's trial balance shows the following accounts: Cash 5,000, Accounts Payable 2,000, Sales Revenue 10,000, Cost of Goods Sold 5,000. What is the company's net income?
A. 5,000
B. 10,000
C. 15,000
D. 20,000
Question 8
A company maintains a cash book and a general ledger. The cash book shows a balance of 5,000, but the general ledger shows a balance of 4,000. What is the reason for the difference?
A. The cash book has been incorrectly balanced.
B. The general ledger has been incorrectly balanced.
C. There is a discrepancy between the cash book and the general ledger.
D. The cash book has not been updated recently.
Question 9
A partnership has two partners, A and B. Partner A invests 10,000 and Partner B invests 5,000. The partnership earns a profit of 3,000. How much will each partner receive as their share of the profit?
A. Partner A will receive 2,000 and Partner B will receive 1,000.
B. Partner A will receive 1,500 and Partner B will receive 1,500.
C. Partner A will receive 2,500 and Partner B will receive 500.
D. Partner A will receive 1,000 and Partner B will receive 2,000.
Question 10
A company's trial balance shows the following balances: Accounts Payable ₦50,000, Sales Revenue ₦200,000, Cost of Goods Sold ₦150,000, and Common Stock ₦100,000. What is the company's net income?
A. ₦50,000
B. ₦20,000
C. ₦30,000
D. ₦10,000
Question 11
A company has the following transactions in its manufacturing account: 100 units produced, 80 units sold, and 20 units in work-in-progress. If the cost of goods sold is ₦120,000, what is the cost of goods sold per unit?
A. ₦1,500
B. ₦1,800
C. ₦2,000
D. ₦2,500
Question 12
A company uses the weighted average method to value its inventory. The company has three types of inventory: raw materials, work-in-progress, and finished goods. The raw materials inventory has a cost of ₦120,000 and a quantity of 100 units. The work-in-progress inventory has a cost of ₦150,000 and a quantity of 50 units. The finished goods inventory has a cost of ₦180,000 and a quantity of 20 units. If the company uses a weighted average method with a weight of 0.4 for raw materials, 0.3 for work-in-progress, and 0.3 for finished goods, what is the total value of the inventory?
A. ₦150,000
B. ₦180,000
C. ₦200,000
D. ₦220,000
Question 13
A company uses the straight-line method of depreciation. If the asset's original cost is ₦200,000 and its residual value is ₦20,000, what is the annual depreciation?
A. ₦80,000
B. ₦90,000
C. ₦100,000
D. ₦110,000
Question 14
A company's balance sheet as at 31st December 2020 showed a non-current asset of ₦1,000,000. The company also had a non-current liability of ₦750,000. Calculate the company's net worth.
A. ₦250,000
B. ₦250,500
C. ₦250,750
D. ₦251,000
Question 15
A company's trading account for the year ended 31st December 2020 showed a profit of ₦1,500,000. The company also had a loss of ₦250,000 from its investments. Calculate the company's total loss for the year.
A. ₦1,250,000
B. ₦1,250,500
C. ₦1,250,750
D. ₦1,251,000

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